Three major types of firms that exist in the United States.
Explanation of Solution
Following are the three major types of the firms that exist in the United States.
Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.
Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.
Concept introduction:
Firms: Firms are the business organizations that sell goods and services in order to earn profits.
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Microeconomics (6th Edition)
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